| Lease purchases and lease options are definitely | | | | landlord in order to prove a little payment history to |
| nothing new to the marketplace. However, they may | | | | the bank. |
| be new to home sellers under the age of forty. From | | | | If the concept of a lease purchase is new to you as |
| the late 1980s up until the mortgage crash interest | | | | a home seller, it may seem a little scary. One of the |
| rates were fairly low (historically speaking) in | | | | best things you can do to protect yourself is demand |
| qualifying for a new loan was relatively reasonable. So | | | | a substantial purchase deposit. Do not get one |
| during this time period, very few qualified purchasers | | | | month's rent like a security deposit. If that's what |
| needed a lease purchase alternative to buy a | | | | they have, you're probably dealing with a lifelong |
| property. | | | | tenant. Be sure to get at least 3% of the purchase |
| However, things have changed. Now there are a lot | | | | price as the purchase deposit. If you are reflecting |
| of potential purchasers with reasonable credit that | | | | back to when you bought your property, you are |
| may not be able to qualify for a new mortgage right | | | | probably thinking someone with 3% down and fair |
| away. It may be worth your time to consider some | | | | credit can qualify for a new mortgage. Well that's not |
| short-term owner financing with one of these | | | | necessarily the case anymore. |
| prospective buyers. Naturally, you want to check | | | | Another thing you want to do before you sign a |
| their credit and maybe even talk with the lender they | | | | lease purchase or lease option with a buyer, is to find |
| are planning on eventually using to purchase the | | | | out their current address and drive by the property. |
| property. The lender may tell you things look | | | | In most cases, whatever that property looks like |
| promising for them to get a new loan in a particular | | | | right now is what your property will apply six months |
| number of months or the lender may tell you not to | | | | after they move in. If the grass is waist deep and |
| plan on actually cashing out anytime soon. | | | | cars are parked in the yard that is just the way they |
| If your property has already been on the market for | | | | live. Don't kid yourself and think their habits will |
| a while, you would be amazed at the amount of new | | | | change in your house. If your property is not in the |
| activity you will get once you add a "Lease Purchase | | | | best of conditions and the way they treat their |
| Available" header to your for sale sign. There are a | | | | current property is acceptable, that's great. However |
| lot of properties on the market, but you will be one | | | | if you have a nice property, taking the time to drive |
| of the few willing to work with the buyer on their | | | | by their current address is definitely worth it |
| financing. Many of these people simply need a few | | | | considering the value of the asset you are going to |
| months of steady payments to a lease option | | | | be turning over to them. |